OFFER LETTER: PARTIES

Offer Letters: Who Are the Actual Parties to the Deal?

Last Friday, we tackled Earnest Money. Today, let’s take a step back and look at something that seems simple—but isn’t always: the parties to the transaction.

At the top of every offer letter or contract, you’ll find the names of the parties—the buyer and the seller. But let’s break that down a bit and ask my favorite question:

What could go wrong?

Let’s start with the Seller.

The obvious answer? Just write down whoever is listed on the title.

But here’s the reality: in many cases, brokers hesitate to reveal the seller’s identity right away—usually out of privacy concerns or to avoid client poaching.

That’s understandable.

So for offer letters, it’s acceptable to simply say:

“The registered owner/s of Property located at [address].”

No names yet.

But once you move toward formal agreements—especially anything legally binding—you must list the full names of all registered owners, exactly as they appear on the certified copy of the title.

Now, let’s talk about the Buyer.

This part is usually straightforward… until it’s not.

What if the buyer is the mother, but she wants the title to be in her daughter’s name?

Who do you list?

I suggest putting the person funding the transaction—in this case, the mother. She’s the one the seller will likely vet, and her name may have more online traceability or professional history.

But here’s the key:

Include a clause that gives the buyer flexibility to assign the purchase to someone else later. Something like:

“The BUYER reserves the right to use or nominate either a corporate vehicle or another individual as the acquiring entity in the completion of this transaction.”

This gives the buyer room to plan—whether it’s for estate planning, tax strategy, or asset structuring.

Why is that clause so important?

Well… let’s just say tomorrow’s horror story will make it very, very clear.

Stay tuned.